Prospective currency units

ABSTRACT

Methods and systems for calculating values for indexes based on breakout currencies are provided. A prospective breakout index may be formed before an entity breaks out of a monetary union. Other aspects relate to calculating an initial index value on a breakout date. An initial exchange rate of the breakout currency may be combined with a breakout value and/or a base value. In one embodiment, the breakout value is the reciprocal of the initial exchange rate. Therefore, in accordance with certain embodiments, the initial index value of the breakout index may be equal to the base value. Further aspects relate to calculating a second index value. A second exchange rate of the breakout currency may be utilized with the fixed base value and the breakout value to calculate the second index value of the breakout index. Further aspects relate to creating a prospective currency unit for a monetary union.

CROSS REFERENCE TO RELATED APPLICATIONS

The present application is a continuation application of pending U.S.application Ser. No. 12/909,634, filed Oct. 21, 2010 which isincorporated herein in its entirety for any and all non-limitingpurposes.

FIELD OF THE INVENTION

The present invention relates to the calculation of indexes and, inparticular, to methods and systems that may calculate values for indexesbased on breakout currencies.

DESCRIPTION OF THE RELATED ART

In modern history, governmental entities have joined together to formmonetary unions. The formation of monetary unions is intended to promoteeconomic growth by minimizing or removing political barriers,facilitating travel and cross-border trade, providing for pricingtransparency and a unified financial marketplace, price stability and/orlow interest rates. As one example, the European Union has achieved manyof these goals. Its currency (the Euro or EUR), has become the world's2nd most preferred reserve currency after the U.S. Dollar (USD). Whiledifferent in some aspects, currency unions may also provide benefits toits members. In this regard, reference to monetary unions throughoutthis disclosure shall encompass similar and/or related collections ofentities, such as currency unions unless noted otherwise.

Although benefits exist to members of these unions, there may also beproblems. For example, national governments of the European Union(inclusive of their central banks) can no longer control monetary supplyand must generally meet certain “convergence criteria,” however, maystill issue debt—leading to potential consequences to the union. Forexample, some entities of a union may experience high unemployment,continued recessions or depressions, and deficit spending problems, thusaltering the value of the currency. In contrast, other entities in theunion may experience stronger economic conditions, thus triggeringstrong political and public sentiments. For example, should and must theentities with stronger economic conditions provide economic assistanceto the other entities, and if so, to what extent can or should themonetary union manage a specific member's national affairs. These issuesraise questions regarding the best approaches to preserve value of themonetary union's currency while best serving its members.

Because the currency of monetary unions, such as the European Union, arewidely circulated, it is constantly exchanged with other currencies.Further, the Euro and other currencies are traded, like othercommodities. Because of the problems discussed above, contracts to tradeon the expectation of a possible breakout or dissolution have been made.Some traders have utilized so-called binary or political event contractsto trade on the expectation of a possible breakout or dissolution of amonetary union. For example, a binary contract is purchased or sold at anegotiated price and pays either $X or $0 depending and contingent uponthe occurrence of a specific event, e.g., a specific entity breaks outof the monetary union. But that payout of $X is completely arbitrary andis not based on the observed economic consequences of such monetarydissolution.

Further, current systems or methods do not accurately provide a measureof the aggregate value of a monetary union currency (such as the Euro)as well as any newly established or re-established currencies from anypossible breakout entities that splinter or otherwise change theirrelationship with the monetary union. For example, one or more entitiesmay leave, be removed from, or otherwise alter their relationship in asubstantial manner with a monetary union. In certain instances, theentities (referred to as a “breakout entities”) may initiate circulatingtheir own currency; therefore, the value of the currency of a monetaryunion that the entities may no longer be associated with will notreflect the economic conditions of the breakout entities. It may,however, be beneficial to value a prospective “breakout” currencyrelative to the ongoing value of the currency of the monetary union.

Therefore, for these and other reasons, improved systems and methods aredesirable.

SUMMARY OF THE INVENTION

Aspects of the embodiments address one or more of the issues mentionedabove and/or other issues by disclosing methods, computer readablemedia, and apparatuses configured to calculate threat ratings. Aspectsof the invention relate to computer implemented methods.

Certain aspects relate to a breakout index. In one embodiment, thebreakout index may be formed before an entity breaks out of a monetaryunion. In certain aspects, the index may incorporate a contingent orforward looking aspect, for example, to the extent that a value of theindex will remain at a base value if an event does not occur. But if aspecific event does occur or may occur with a certain degree ofprobability, the value of the index may reflect the economic impact ofsuch event by reflecting the relative value of the newly orprospectively established “breakout” currency vs. the currency of themonetary union.

According to one aspect, it may be determined whether an entity, such asa governmental entity, of a monetary union issues a breakout currency.In one embodiment, if the breakout currency is not issued, a processormay calculate an initial index value of a prospective breakout indexbased upon a prospective breakout currency. Depending on the embodiment,an index value based upon a currency of the monetary union may bereceived. For example, in one embodiment the breakout entity may be partof the European Union, therefore, the index value may be from an indexbased upon the Euro. A calculation of the index value may combine afixed base value of the breakout index with the index value based upon acurrency of the monetary union to calculate the initial index value ofthe prospective breakout index. In one embodiment, the initial value maybe determined by the equation: Breakout Index_(i)=Base Value×ExchangeRate_(i)×Breakout Value, wherein the initial value of the Breakout Index(“Breakout Index_(i)”) equals the fixed base value (“Base Value”)multiplied with the initial exchange rate (“Exchange Rate_(i)”) and thebreakout value determined as the reciprocal of the Exchange Rate_(i)(“Breakout Value”). Therefore, the Breakout Index_(i)=Base Value.

Other aspects relate to calculating an initial index value upon issuance(or indication of issuance) of the first breakout currency by an entityof the monetary union. For example, an initial exchange rate of thefirst breakout currency may be received. The exchange rate may be afirst exchange rate against the currency of the monetary union. Or, theexchange rate may be an official initial exchange rate of the breakoutcurrency vs. the currency of the monetary union. Certain embodiments,may determine the breakout value of the first breakout currency. In oneembodiment, the breakout value may be established as a reciprocal of theinitial exchange rate. Therefore, in accordance with certainembodiments, the initial index value of the breakout index is equal tothe base value. This may be useful to calibrate the index on thebreakout date.

Further aspects relate to systems and methods configured to calculate asecond index value of the breakout index. The second index value may becalculated on a routine basis and/or upon the occurrence of an event. Inone embodiment, a second exchange rate of the first breakout currencymeasured against the currency of the monetary union may be received orcalculated. The fixed base value and the breakout value (such asreceived or determined as part of calculating the initial index value)may be utilized with the second exchange rate of the first breakoutfinancial instrument to calculate the second index value of the breakoutindex. In one embodiment, the second index value may be determined bythe equation: Breakout Index₂=Base Value×Exchange Rate₂×Breakout Value,wherein the second value of the Breakout Index (“Breakout Index₂”)equals the fixed base value multiplied with the second exchange rate(“Exchange Rate₂”) and the breakout value utilized in the determinationof the initial value (“Breakout Value”). Those skilled in the art willappreciate that additional index values may be calculated. Further,additional indexes based upon other breakout currencies are within thescope of this disclosure.

Further aspects relate to the reception of bids and offers for abreakout financial instrument based upon the breakout index. Inaccordance with certain embodiments, the bids and offers may be receivedat an order book module of an exchange computer system. In anotherembodiment, the bids and offers may be matched at a match engine of anexchange computer system.

Further aspects relate to systems and methods configured to calculate avalue representing a prospective currency unit of a monetary union. Inone embodiment, an initial value of the prospective currency may becalculated on a breakout date of one or more breakout entities. Thecalculation of the initial value may include weighting an exchange rateof the breakout entity against a second currency (such as the US Dollar)according to its proportion of an aggregated economic indicator valuefor the monetary union. The exchange rate the monetary union's currency(such as the Euro) may also be weighted against the same second currencyaccording to the proportion of the economic indicator value notattributable to the breakout entity (or entities). In one embodiment,the economic indicator may relate to the Gross Domestic Product (GDP) ofthe respective entities.

Certain embodiments may utilize the weighted exchange rates to obtainthe initial value of the prospective currency unit. For example, incertain embodiments, an indication may be received indicating whether anentity issued a breakout currency. A null contingency weighting may beassigned to each entity that did not issue a breakout currency. Forbreakout entities, contingency weightings representative of theproportion of the entity's economic indicator value against theaggregated economic indicator may be assigned. In further embodiments, abreakout value that is a reciprocal of an initial exchange rate betweenthe breakout currency and a currency of the monetary union may beassigned on the breakout date.

Products for each entity may be calculated with a processor using aninitial price, the assigned contingency weighting, and the breakoutvalue of the respective breakout currency. A product may be calculatedfor the monetary union with a processor using the price of the currencyof the monetary union and a monetary union contingency weighting. Incertain embodiments, the products may be summed with a processor tocreate an initial value representing a prospective currency unit of themonetary union. Further aspects relate to calculating a second value forthe prospective currency unit after calculating the first value. Thesecond (or additional values) may be calculated to accord properweightings of updated economic indicator values, account for fluctuatingexchange rates, factor in the addition or subtraction of any breakoutentities, or any other variables.

Aspects of the embodiments may be provided in a computer-readable mediumhaving computer-executable instructions, that when executed by aprocessor, are configured to perform one or more of the process stepsdescribed herein. These and other aspects of the embodiments arediscussed in greater detail throughout this disclosure, including theaccompanying drawings. The details of these and other embodiments of thepresent invention are set forth in the accompanying drawings and thedescription below. Other features and advantages of the invention willbe apparent from the description and drawings, and from the claims.

BRIEF DESCRIPTION OF THE DRAWINGS

The present invention may take physical form in certain parts and steps,embodiments of which will be described in detail in the followingdescription and illustrated in the accompanying drawings that form apart hereof, wherein:

FIG. 1 illustrates a computer network system that may be used toimplement aspects of the present invention;

FIG. 2 is a flowchart showing an exemplary method of calculating indexvalues of a breakout currency index in accordance with an embodiment ofthe invention;

FIG. 3 is a flowchart showing another exemplary method of calculating anindex value of a breakout currency index in accordance with anembodiment of the invention;

FIG. 4 is a flowchart showing an exemplary method of calculatingprospective currency unit values in accordance with an embodiment of theinvention; and

FIGS. 5A-5C are illustrative conceptual tables that may be utilized inthe calculating prospective currency unit values in accordance with anembodiment of the invention.

DETAILED DESCRIPTION OF THE INVENTION Exemplary Operating Environment

Aspects of the present invention may be implemented with computerdevices and computer networks that allow traders, exchanges and otherentities to exchange trading data, such as orders and marketinformation. An exemplary trading network environment for implementingtrading systems and methods is shown in FIG. 1. An exchange computersystem 100 receives orders and transmits market data related to ordersand trades to users. Exchange computer system 100 may be implementedwith one or more mainframe, desktop or other computers. In this regard,exchange computer system comprises at least one processor, such asprocessor 101, configured to process computer-executable instructionsfrom at least one tangible non-transitory computer-readable medium. Auser database 102 includes information identifying traders and otherusers of exchange computer system 100. Data may include user names andpasswords potentially with other information to identify users uniquelyor collectively. An account data module 104 may process accountinformation that may be used during trades. A match engine module 106 isincluded to match bid and offer prices.

Match engine module 106 may be implemented with software that executesone or more algorithms for matching bids and offers. A trade database108 may be included to store information identifying trades anddescriptions of trades. In particular, a trade database may storeinformation identifying the time that a trade took place and thecontract price. An order book module 110 may be included to compute orotherwise determine current bid and offer prices. A market data module112 may be included to collect market data and prepare the data fortransmission to users. A risk management module 134 may be included tocompute and determine a user's risk utilization in relation to theuser's defined risk thresholds. An order processing module 136 may beincluded to decompose variable defined derivative product and aggregateorder types for processing by order book module 110 and match enginemodule 106.

The trading network environment shown in FIG. 1 includes computerdevices 114, 116, 118, 120 and 122. Each computer device includes acentral processor that controls the overall operation of the computerand a system bus that connects the central processor to one or moreconventional components, such as a network card or modem. Each computerdevice may also include a variety of interface units and drives forreading and writing data or files. Depending on the type of computerdevice, a user can interact with the computer with a keyboard, pointingdevice, microphone, pen device or other input device.

Computer device 114 is shown directly connected to exchange computersystem 100. Exchange computer system 100 and computer device 114 may beconnected via a telecommunications line, a common local area network(LAN) or other mechanism for connecting computer devices. Computerdevice 114 is shown connected to a radio 132. The user of radio 132 maybe a trader or exchange employee. The radio user may transmit orders orother information to a user of computer device 114. The user of computerdevice 114 may then transmit the trade or other information to exchangecomputer system 100.

Computer devices 116 and 118 are coupled to a LAN 124. LAN 124 may haveone or more of the well-known LAN topologies and may use a variety ofdifferent protocols, such as Ethernet. Computers 116 and 118 maycommunicate with each other and other computers and devices connected toLAN 124. Computers and other devices may be connected to LAN 124 viatwisted pair wires, coaxial cable, fiber optics or other media.Alternatively, a wireless personal digital assistant device (PDA) 122may communicate with LAN 124 or the Internet 126 via radio waves. PDA122 may also communicate with exchange computer system 100 via aconventional wireless hub 128. As used herein, a PDA includes mobiletelephones and other wireless devices that communicate with a networkvia radio waves.

FIG. 1 also shows LAN 124 connected to the Internet 126. LAN 124 mayinclude a router to connect LAN 124 to the Internet 126. Computer device120 is shown connected directly to the Internet 126. The connection maybe via a modem, DSL line, satellite dish or any other device forconnecting a computer device to the Internet.

One or more market makers 130 may maintain a market by providing bid andoffer prices for a derivative or security to exchange computer system100. Exchange computer system 100 may also exchange information withother trade engines, such as trade engine 138. One skilled in the artwill appreciate that numerous additional computers and systems may becoupled to exchange computer system 100. Such computers and systems mayinclude clearing, regulatory and fee systems. Coupling can be direct asdescribed or any other method described herein.

The operations of computer devices and systems shown in FIG. 1 may becontrolled by computer-executable instructions stored oncomputer-readable media. For example, computer device 116 may includecomputer-executable instructions for receiving order information from auser and transmitting that order information to exchange computer system100. In another example, computer device 118 may includecomputer-executable instructions for receiving market data from exchangecomputer system 100 and displaying that information to a user.

Of course, numerous additional servers, computers, handheld devices,personal digital assistants, telephones and other devices may also beconnected to exchange computer system 100. Moreover, one skilled in theart will appreciate that the topology shown in FIG. 1 is merely anexample and that the components shown in FIG. 1 may be connected bynumerous alternative topologies.

Exemplary Embodiments

FIGS. 2-3 are flowcharts of various exemplary methods in accordance withaspects disclosed herein that may be implemented to calculate an indexvalue of a breakout index. In certain embodiments, an initial indexvalue may be calculated upon issuance of a breakout currency. Inaccordance with other embodiments, a prospective breakout index may beformed before issuance of a respective breakout currency, therefore, aprospective breakout index value may be calculated although no breakoutcurrency has been issued, or may be issued. Exemplary embodiments willbe described in more detail below.

Looking first to FIG. 2, flowchart 200 displays an exemplary method ofcalculating an initial index value of a breakout index. A breakout indexmay be created by tracking the exchange rate between the originalcurrency of a monetary union (e.g., the Euro of the European Union) andany newly created or reestablished currency that emerges as a result ofthe breakup of monetary union. Exemplary block 202 of FIG. 2 may beimplemented to determine a base value of a breakout index. One or morevarious breakout indexes may be fixed at an arbitrary “base value” of1.0 or any other arbitrary fixed value (e.g., 100.00, 1,000.00, etc.) tothe extent that dissolution of monetary union has not yet occurred. Asexplained in more detail below, an index may be simply valued at thatarbitrary number assigned or determined at block 202 if, for example,the breakout of a specific entity has not occurred.

Determining a base value (either at block 202 or any other methoddisclosed herein) may consider one or more factors; however, a specificbase value is not required or mandated. In one embodiment, determining abase value may comprise receiving an electronic signal indicative of auser input indicating the base value. The user input may be receivedfrom any electronic device, including computer devices 116, 118, 120and/or PDA 122. The electronic signal may be received through theInternet 126 and/or LAN 124. In certain embodiments, determining a basevalue may comprise retrieving, such as with a processor, such asprocessor 101, a computer-executable instructions from acomputer-readable medium (including, for example, any database (see 102,108) or module (see 104, 106, 110, 112, 134, 136) within exchangecomputer system 100 or any memory computers 116, 118, 120 and/or PDA 122shown in FIG. 1. The computer-executable instructions may comprise theactual base value, yet in other embodiments, the instructions mayinclude one or methods for calculating the base value. For example, inone embodiment, computer-executable instructions may, upon execution bya processor, determine a previously calculated base value relating toanother currency for use as the base value of block 202. Further,although block 202 was shown towards the top of flowchart 200, those ofordinary skill in the art will appreciate that block 202, as well otherprocess illustrated in the FIGS. herein may be performed in other thanthe recited order, and that one or more steps illustrated may beoptional in accordance with aspects of the various embodiments.

Block 204 may be implemented to receive an indication whether an entityissued a breakout currency. For example, an electronic signal mayindicate that an entity of a monetary union issued a breakout currency.Similar to block 202, the electronic signal may be (but is not requiredto be) generated by a user input and received through an electroniccommunication channel, such as LAN 124 and/or Internet 126 or retrievedfrom one or more computer-readable mediums. In certain embodiments, theindication may merely indicate that a governmental entity's relationshipwith a monetary union may be altered such that the governmental entityissues a currency (“breakout currency)” separate from the currency ofthe monetary union. In other embodiments, a presumption that a breakoutcurrency has issued or will issue may occur as a result of receivingrelated information.

As one example, the European Union's current currency is the Euro,therefore, any currency issued by a member of the European Union, wouldbe considered a breakout currency as set forth in this disclosure.Breakout currencies include possible recreations of former currencies,such as for example, Portuguese escudo (PTE), Irish punt (IEP), Greekdrachma (GRD) or Spanish peseta (ESP). Yet, in other embodiments thebreakout currency may be a new currency. Further, those skilled in theart will appreciate that a portion or faction of a member of a monetaryunion may separate from the monetary union separate from another portionor faction and still be within the scope of this disclosure.

If at block 204 it is determined that a first breakout currency was notissued, then block 206 or another method may be implemented. In oneembodiment, block 206 may calculate an initial index value of aprospective breakout index based upon a prospective breakout currency.Calculating a prospective breakout currency may be performed accordingto various methods. In accordance with one embodiment, an index value ofan index based upon the currency of the monetary union may be received(see, block 206 a). For example, if the prospective breakout currencyrelates to an entity of the European Union, then the value of the Euro(or an index based thereon) may be received. In certain embodiments,information regarding the value of the currency and/or and index basedthereon may be received and/or stored at market data module 112 or anyother module or computer-readable medium. Because the prospectivebreakout currency has yet to be issued (and may not issue), its value isrelated to the value of the currency of the monetary union (and/or anindex based upon such a currency). Those skilled in the art with thebenefit of reading this disclosure will appreciate that reference to a“first breakout currency” is for illustrative purposes only and thatanother breakout currency may issue before issuance of the firstbreakout currency. In this regard, the teachings of this disclosure areapplicable to multiple indexes of several breakout currencies. Further,one or more indexes for breakout currencies may be based upon a currencyof single monetary union.

Block 206 b may be implemented to calculate an initial index value ofthe prospective breakout index. In one embodiment, a fixed base value(for example, a base value determined or received at block 202) may becombined with the index value received at block 206 a. Thus, if theindex relates to the exchange rate of the prospective breakout currencyand the currency of the monetary union, the initial index value of theprospective breakout index will not vary from the base value. Thecalculation of the initial index value may be performed by anyprocessor, including processor 101 of exchange computer system 100. Thecalculation may be performed on a routine basis, such as every hour,every day, and/or every week. Yet, in other embodiments, the calculationmay be contingent on another action, for example, such as the receipt ofan electronic signal.

If, however, the indication of block 204 indicates an issuance of thefirst breakout currency, an initial index value of a breakout indexbased upon the breakout currency may be calculated (see, block 208). Inone embodiment, an initial exchange rate of the breakout currencyagainst the currency of the monetary union may be received (see, block208 a). The initial exchange rate may be the first exchange rateobtained, yet in other embodiments, a determination may be made of whenthe currency issued and a currency exchange rate from the closestcorresponding time frame may be utilized. Those skilled in the art willreadily appreciate that the exchange rate may be gathered from numeroussources. For example, exchange rates may be received from prevailingprices in the marketplace, reference to an authoritative fixing such asa central bank, an official exchange rate, and/or obtained from surveydata. Therefore, in accordance with certain embodiments, an exchangerate may be determined from information from a plurality of sources.

For example, instead of receiving an exchange rate from a first source,two or more values representing the exchange rate may be received frommultiple sources. In one embodiment, the values may be averaged toobtain the exchange rate utilized. For example, survey data may becombined with an official exchange rate to obtain the exchange rateutilized. Those skilled in the art will readily appreciate that othermethods for receiving an exchange rate may be implemented withoutdeparting from the scope of this disclosure.

An initial value of the first breakout currency may be determined atblock 208 b. In one embodiment, the initial value of the first breakoutcurrency is determined as the reciprocal of the initial exchange ratereceived at block 208 a. For example, the breakout currency index may becalibrated by establishing a “breakout value” that represents thereciprocal of the quoted exchange rate of the breakout currency vs. thecurrency of the monetary union, such as the Euro. Calculating theinitial value, such as determining the reciprocal of the exchange rate,may be readily performed by any modern processor, such as processor,including for example, processor 101.

Block 208 c may be implemented in calculating the initial index value ofthe breakout index. In certain embodiments, the initial index value iscalculated upon receiving an indication that a breakout currency hasissued. In other embodiments, the initial index value may be calculatedupon receiving an indication that an entity (such as a governmentalentity) has decided to alter its relationship with a monetary union suchthat a currency must be issued. Depending on the embodiments, either orboth of these dates may be considered the “breakout date,” thussignaling the date the initial index value was calculated. Block 208 cmay include combining a fixed base value (such as the base value ofblock 202) with the initial exchange rate of the breakout currency (suchas received at 208 a) and the breakout value of the breakout currency(see, block 208 b). For example, Equation #1 may be implemented tocalculate the initial index value of the breakout index.Breakout Index_(i)=Base Value×Exchange Rate_(i)×Breakout Value  Equation#1

Thus, in accordance with the embodiment utilizing Equation #1, theinitial value of the Breakout Index (“Breakout Index_(i)”) equals thefixed base value (“Base Value”) multiplied with the initial exchangerate (“Exchange Rate_(i)”) and the breakout value determined as thereciprocal of the Exchange Rate_(i) (“Breakout Value”). Therefore, theBreakout Index_(i)=Base Value.

Those persons of ordinary skill in the art will readily appreciate thatexchange rates of currencies fluctuate, therefore, aspects of thisdisclosure relate to calculating updated values of the breakout index.Therefore, a second index value may be calculated for the breakout indexat a second time frame that follows the time frame at which the initialvalue of the breakout index was determined (see, block 210). Thecalculation of the second index value (and/or any number of reiterationsof calculating the index value) may be performed on a routine basis. Yetin other embodiments, occurrence of one or more events may trigger acalculation of a value for the breakout index. In certain embodiments,an updated exchange rate of the breakout currency against the monetaryunion currency may be obtained (see, block 210 a, receiving a “second”exchange rate).

Further, calculating a second index value may utilize informationobtained from or utilized in the calculation of the initial index value(e.g., block 208). For example, the initial value of the breakoutcurrency calculated (or received) in block 208 b may be utilized atblock 210 b or as part of any methods that may be implemented to receivethe initial value of the breakout currency. In certain embodiments, thisinformation may be combined with other information, for example the basevalue of the index (see, block 202) may be utilized to calculate thesecond index value of the breakout currency index. In one embodiment, asecond value of the breakout index may be calculated using Equation #2,which is shown below.Breakout Index₂=Base Value×Exchange Rate₂×Breakout Value  Equation #2:

As shown in Equation #2, the second value of the Breakout Index(“Breakout Index₂”) equals the fixed base value of Equation #1 (“BaseValue”) multiplied with the second exchange rate (“Exchange Rate₂”) andthe breakout value of Equation #1 (“Breakout Value”). Therefore, unlessthe second exchange rate is identical to the initial exchange rate, thenBreakout Index₂ will not equal the Base Value. An illustrative exampleof calculating an initial value and a second value of a Breakout Indexaccording to Equations 1 and 2 is provided below.

In a hypothetical example, assume Greece separated from the EuropeanUnion and reestablished the Greek Drachma as currency. In this example,the Greek drachma Breakup Index was associated with a fixed base valueof 1,000.00 and the exchange rate on the breakout date equals 2.5000drachmas per Euro. Therefore, using Equation #1: Breakout Index_(i)=BaseValue (1,000)×Exchange Rate_(i)(2.5)×Breakout Value (1/2.5=0.4).

As indicated above, using Equation #1 will calibrate the index on thebreakout date such that Breakout Index_(i)=Base Value because theinitial exchange rate (“Exchange Rate_(i)”) cancels out the breakoutvalue (“Breakout Value”) which is the reciprocal of the ExchangeRate_(i). Therefore, the Breakout Index_(i)=Base Value, which is1,000.00.

Assume then at a second time frame the exchange rate fluctuates to2.6000 such that it requires 2.6000 drachmas to purchase one Euro,therefore the second exchange rate (“Exchange Rate₂”)=2.6. Thus, usingEquation 2: Breakout Index₂=Base Value (1,000)×Exchange Rate₂(2.6)×Breakout Value (0.4). Therefore, using Equation #2, the secondvalue of the Breakout Index (“Breakout Index₂”) is 1040.00. Because thesecond exchange rate is no longer the same as the initial exchange rate,then Breakout Index₂ no longer equals the Base Value. Alternatively, ifthe second (or third) exchange rate fluctuates to 2.3500 drachmas perEuro, the Breakout Index value would be 940.00 (Breakout Index₂=BaseValue (1,000)×Exchange Rate₂ (2.35)×Breakout Value (0.4)=940.00.

Further embodiments are directed toward calculating a value for abreakout index only upon receiving an indication that a breakoutcurrency will be or has issued. (see, block 302 of FIG. 3). For example,an index based upon a prospective breakout index may not be formed, butrather only an index based upon an actual breakout currency may beformed. In certain embodiments, an indication (such as part of block302) indicates that a breakout currency has issued. In otherembodiments, an indication may comprise information that an entity (suchas a governmental entity) has decided to alter its relationship with amonetary union such that a currency will be issued. Depending on theembodiments, either or both of these dates may be considered the“breakout date,” thus signaling the date the initial index value wascalculated.

Block 304 may be implemented to receive a fixed base value of thebreakout index. The reception of the fixed base value of block 304 maybe the same as or similar to the reception of the base value of block202. While a breakout index value may not be calculated until afterformation of the particular breakout currency, the base value of block304 may be determined or otherwise known before the formation of thebreakout currency.

An initial exchange rate of the breakout currency against the currencyof the monetary union may be received (see, block 306). The receptionand/or determination of the initial exchange rate may be the same as oridentical to one or more processes described above in relation to block208 a. An initial value of the first breakout currency of the breakoutentity may be determined at block 308, which may be the same as orsimilar to the reception and/or determination of the initial value ofthe breakout currency described in relation 208 b. Further, as shown inFIG. 3, block 310 may be implemented in the calculation of the initialindex value of the breakout index. In certain embodiments, the initialindex value is calculated upon receiving an indication that a breakoutcurrency has issued. In other embodiments, the initial index value maybe calculated upon receiving an indication that an entity (such as agovernmental entity) has decided to alter its relationship with amonetary union such that a currency must be issued. Depending on theembodiments, either or both of these dates may be considered the“breakout date,” thus signaling the date the initial index value wascalculated.

Similar to block 208 c of FIG. 2, block 310 may include combining afixed base value (such as the base value of block 304) with the initialexchange rate of the breakout currency (such as received at 306) and thebreakout value of the breakout currency (see, block 308). For example,Equation #1, discussed above, may be implemented to calculate theinitial index value of the breakout index. Furthermore, a second indexvalue may be calculated for the breakout index at a second time periodthat follows the time at which the initial value of the breakout indexwas determined (see, block 312). Block 312, or any other process(es)that calculate additional index values of the index may incorporateteachings disclosed earlier in this disclosure, including but notlimited to: blocks 210 a-210 c. The calculation of the second indexvalue (and/or any number of reiterations of calculating the index value)may be performed on a routine basis. Yet in other embodiments,occurrence of one or more events may trigger a calculation of a valuefor the breakout index. For example, if the initial value of thebreakout index was calculated using Equation #1, then one embodiment maycalculate a second value of the breakout index using Equation #2 (shownabove).

The methods shown in FIGS. 2 and 3 may be used to determine the value offinancial instruments in the form of futures and/or options on futurescontracts. In one embodiment, the calculation of the value of thefutures and/or options on futures contracts may be performed by anexchange, such as the Chicago Mercantile Exchange, Inc. The exchange mayalso perform other functions such as listing the financial instrumentsfor trading, receiving bids and offers for the financial instruments andmatching bids and offers for the financial instruments, for exampleusing one or more components of exchange computer system 100, shown inFIG. 1. Conventional settlement services for executed trades of thefinancial instrument may also be performed by the exchange. The exchangemay also provide notice of matched trades to traders associated withmatched bids and offers.

Table 1, shown below, provides an exemplary futures specification of anexemplary breakout index.

European Union Breakout Index Futures Specifications Subjects ofPossible “breakout currencies” from Portugal, Ireland, Greece and Spainvs. Index Euro Contract $50 × Breakout Index, e.g., if Breakout Index =1,040.00 then Size futures contract value = $52,000 (= $50 × 1,040.00)Tick Size 0.01 index points ($5.00) Index Breakout Index valued asfollows. Construction Breakup Index = 1,000.00 × Exchange Rate ×Breakout Value The Exchange Rate represents the prevailing value of thesubject breakout currency vs. the Euro quoted in terms of the breakoutcurrency per one (1) Euro. The breakout value is fixed as reciprocal ofexchange rate on breakout date (first business date on which breakoutcurrency officially exists). Breakout value is established by survey ofinterbank FX dealers conducted at 9:00 am (CT). Trade Ends @ 9:16 am(CT) on 2^(nd) business day immediately preceding 3^(rd) Wednesday ofcontract month Cash All open positions on termination of trading arecash settled based upon Settlement special quotation of Breakout Index.This special quotation is based on exchange rate as established bysurvey conducted of interbank FX dealers by Exchange staff. Surveyedexchange rate is entered into Breakout Index formula as described above.Trading Sundays through Fridays: 5:00 p.m.-4:00 p.m. Central time (CT)the next Hours day. On Friday CME Globex ® platform closes at 4:00 p.m.and reopens Sunday at 5:00 p.m. CT. Months List three (3) years out inthe months of June and December Position Positions of more than 6,000contracts net long or short, in all contract Accountability monthscombined must provide, in a timely fashion upon request by CME,information regarding the position

Orders regarding instruments of a breakout currency index may include atrader's name, trading firm name, account number, contract, price andquantity. Additional order information may include identifyinginformation that uniquely identifies the order, such as a serial number,contract price and quantity.

Further aspects relate to systems and methods configured to calculate avalue representing a prospective currency unit of a monetary union. Forexample, as discussed above, one or more entities may leave or beremoved from a monetary union. In certain instances, the entities(referred to as a “breakout entities”) may initiate circulating theirown currency; therefore, the value of the currency of a monetary unionwill not reflect the economic conditions of the breakout entities.Therefore, aspects relate to calculating values for a prospectivecurrency unit. For example, it may be beneficial to value a prospectivecurrency of the monetary union to indicate a value as if the breakoutentities were still part of the monetary union.

FIG. 4 is flowchart 400 showing an exemplary method of calculating anexemplary prospective currency unit in accordance with one embodiment.The flowchart of FIG. 4 will be explained in association with FIGS.5A-5C, which provide illustrative conceptual visualizations of tablesshowing the calculation of the prospective currency unit in accordanceto exemplary embodiments. Therefore, FIG. 5A will first be discussed toprovide a general overview.

As shown in FIG. 5A, table 500 shows a plurality of entities (see, e.g.,the “States” listed in column 502) of a monetary union. As shown bycolumn 504, the entities may be numerically represented, such as by theexemplary respective values shown in column 504. For example, the entitylabeled “Austria” in column 502 is associated with, and therefore may bereferenced by _(i)=1, and similarly the entity labeled “Greece” incolumn 502 may be referenced by _(i)=7.

Now turning to the exemplary method shown by flowchart 400, an exchangerate between a currency of the monetary union and a second currency maybe received to obtain a price of the currency of the monetary union(see, block 402). For example, in one embodiment, if the monetary unionis the European Union, then the exchange rate may be the rate of USD tothe Euro. Those skilled in the art will readily appreciate that theexchange rate may be gathered from numerous sources. For example,exchange rates may be received from prevailing prices in themarketplace, reference to an authoritative fixing such as a centralbank, an official exchange rate, survey data, or combinations thereof.

Block 404 and/or other process(es) may be implemented to receive aneconomic indicator value for each of the entities of the monetary union(or were previously as of a fixed time-frame, part of the monetaryunion). In one embodiment, the economic indicator value may compriseinformation relating to the gross domestic product (“GDP”) of theindividual entity. Estimates for the GDP may be obtained from aplurality of sources, including but not limited to: surveys, governmentagencies, commercial non-governmental entities, and combinationsthereof. Economic indicators may be transmitted though any electroniccommunication pathway, such as for example, either LAN 124 and/orInternet 126 shown in FIG. 1. One or more of the economic indicators maybe received at exchange computer system 100.

Turning briefly to FIG. 5A, exemplary table 500 conceptually conveys oneembodiment in which the economic indicator values relate to GDPs. Theentities shown in table 500 are each associated with a GDP value (shownin column 506). The GDP value may be received at block 404. Thoseskilled in the art will appreciate that column 506 (or any column) isnot required to be physically populated, but rather is shown forillustrative purposes to demonstrate the reception of data andcalculation of one or more values based on one exemplary embodiment.Furthermore, while the GDP is conveyed in “Bil USD”, those skilled inthe art will appreciated that other currencies or units may be utilizedand are within the scope of this disclosure.

Looking to row 508 of FIG. 5A, it relates to the monetary union (i.e.,European Union or _(i)=0) whereas the collection of rows 510 providesinformation relating to individual entities within the monetary union ata specific time period (_(i)=1-16). In one embodiment, the time periodmay be just prior to at least one of the entities breaking out orotherwise changing its relationship with the monetary union. Forexample, table 500 may be viewed as a snapshot as what entities werewithin a specific monetary union on a specified date. Therefore, in oneembodiment, a process (including, e.g., block 404) may be implemented toreceive economic indicator values (e.g., shown in column 506) for eachentity within the monetary union on a specific date (shown by collectionof rows 510).

The economic indicators and/or any information derived from or relatingto the indicators may be stored and/or manipulated with the utilizationof any computer or portion thereof, including any modules shown as partof exchange computer system 100. For example, a non-transitorycomputer-readable medium may comprise computer-executable instructions,that when executed by a processor creates a data structure thatlogically associates the GDP data (and/or other economic indicatorvalues) with the respective entities as shown in table 500 of FIG. 5. Inaccordance with one embodiment, processor 101 of computer exchangesystem 100 shown in FIG. 1 may execute the computer-executableinstructions.

One or more processes, such as for example, block 406 of FIG. 4 may beimplemented to aggregate the economic indicator values for the entitiesof the monetary union (i.e., the entities represented by the collectionof rows 510) to form an aggregated economic indicator value. Thoseskilled in the art will realize that any processor, including aprocessor not related to computer exchange system 100 may be utilized toaggregate the economic indicators or perform other calculationsutilizing the economic indicators. As shown in row 508, the sum of eachof the economic indicator values for each of the entities in thecollection of rows 510 is represented in column 506 of row 508(“$10,584.611”) which represents the GDP of the European Union.

Block 408 or other processes may be implemented to determine if one ormore entities, such as one or more of the entities represented in thecollection of rows 510, issues a breakout currency. For example, anelectronic signal may be received that comprises information indicativethat an entity of a monetary union issued a breakout currency. Theelectronic signal may be generated by a user input and received throughan electronic communication channel, such as LAN 124 and/or Internet 126or retrieved from one or more computer-readable mediums. In certainembodiments, the indication may merely indicate that a governmentalentity's relationship with a monetary union may be altered such that thegovernmental entity issues a currency (“breakout currency)” separatefrom the currency of the monetary union. In other embodiments, apresumption that a breakout currency has issued or will issue may occuras a result of receiving related information from one or more sources.For example, the European Union's current currency is the Euro,therefore, any currency issued by a member (or faction thereof) of theEuropean Union may be considered a breakout currency as set forth inthis disclosure.

For one or more entities that did not issue a breakout currency (forexample, as determined at block 408), a null contingency weighting maybe assigned (see, e.g., block 410). Those skilled in the art willappreciate that assigning a null value may comprise an active methodresulting in a value being populated in a table, such as table 500 ofFIG. 5A. For example, column 512 shows an exemplary visual conception ofan illustrative collection of contingent weightings (W_(i), where i thecorresponding value shown in column 504) in accordance with oneembodiment. Looking to entry 514, which represents the possiblecontingency weights for “Greece” (see column 504, indicating “Greece”corresponds to _(i)=7), Greece may receive a null contingency value of“0%” or a second contingency value of “3.22%.” Thus, for onceembodiment, if Greece issues a breakout currency, then Greece's nullcontingency value may be “0.” Therefore, according to the illustratedembodiment, W₇=0%. (The second possible contingency value will bediscussed below in relation to block 412). Those skilled in the art willappreciate that other values, for example such as “0”, “zero,” “N/A”,among others may designate a null value. Certain embodiments may beimplemented such that an absence of a value is indicative of a nullvalue; therefore, an empty value field or lack of any field may beindicative of a null value.

Alternatively, a contingency weighting may be assigned to one or moreentities (see, e.g., block 412) that issued a breakout currency (forexample, as determined at block 408). In one embodiment, the assignedcontingency weighting may be a function of an economic indicator value(such as the economic indicator value received at block 404) of thatparticular entity. For example, looking again at the exemplary entity“Greece” of table 500, entry 514 indicates that Greece may receive anull contingency value of “0%” (as discussed above in relation to block410) or a second contingency value of “3.22%.” The second contingencyvalue may be calculated by determining the proportion or attribution ofGreece's economic indicator value to an aggregated economic value (suchas the aggregated value of block 406). In the illustrated embodiment,the entry 516 shows that Greece's economic indicator value is “$341.000”billion USD and the aggregated value is “$10,584.611” (see column 506 ofrow 508). Therefore, in the illustrated example of table 500, Greece'seconomic indicator value is 3.22% of the aggregated value, therefore, inaccordance with one embodiment, a contingency weighting reflecting the“3.22%” may be utilized (W₇=3.22%).

One or more systems or methods may assign an initial breakout value ofthe breakout currencies (see, e.g., block 414 of FIG. 4). In oneembodiment, the assigned breakout value for a particular entity mayrepresent the exchange rate of the breakout currency vs. the currency ofthe monetary union on the breakout date. As indicated above, thebreakout date may be the date (or time frame within a date) that thebreakout currency issued. In other embodiments, however, breakout datemay be the date (or time frame within that date) in which an indicationthat the entity has decided to alter its relationship with a monetaryunion such that a currency must be issued.

In one embodiment, the breakout value may be determined in accordancewith one or more methods and/or systems described above, including forexample, blocks 208 a and/208 b of FIG. 2. For example, an initialexchange rate of the breakout currency against the currency of themonetary union may be received (see, block 208 a). The initial exchangerate may be the first exchange rate obtained, yet in other embodiments,a determination may be made of when the currency issued and a currencyexchange rate from the closest corresponding time frame may be utilized.

Those skilled in the art will readily appreciate that the exchange ratemay be gathered from numerous sources. For example, exchange rates maybe received from prevailing prices in the marketplace, reference to anauthoritative fixing such as a central bank, an official exchange rate,and/or obtained from survey data. For example, instead of receiving anexchange rate from a first source, two or more values representing theexchange rate may be received from multiple sources. In one embodiment,the values may be averaged to obtain the exchange rate utilized. Forexample, survey data may be combined with an official exchange rate toobtain the exchange rate utilized. Those skilled in the art will readilyappreciate that other methods for receiving an exchange rate may beimplemented without departing from the scope of this disclosure.

A breakout value may be determined at block 414. In one embodiment, theinitial value of the first breakout currency may be determined as thereciprocal of the initial exchange rate received at a method comprisingor similar to block 208 a. For example, the breakout value may representthe reciprocal of an exchange rate of the breakout currency vs. thecurrency of the monetary union, such as the Euro. Calculating theinitial value, such as determining the reciprocal of the exchange rate,may be readily performed by any modern processor, such as processor,including for example, processor 101. For example, again assuming Greeceissues a new drachma (GRD) as a breakout currency, implementing block414 may reveal that 2.5000 GRD=1 Euro (EUR) on the breakout date, whichmay, for example, be the first official day of the existence of the newdrachma. Therefore, in accordance with one embodiment, the breakoutvalue may be fixed at BV₇=2.5000.

Further embodiments may be implemented to obtain an initial price of thecurrency of one or more breakout entities (see, e.g., block 416). Table520 of FIG. 5B provides a conceptual illustration of an exemplary methodof calculating an initial price of a breakout currency. Looking to row522, entries in table 500 indicate that Greece has a contingencyweighting of 3.22, thus W₇=3.22% (see, entry 524) and a breakout valueof 2.5000, thus BV₇=2.5000 (see, entry 526). In one embodiment, theinitial price of the breakout currency may be calculated as the exchangerate between the particular breakout currency and a second currency thatis not the currency of the monetary union, however, may be derived froman exchange rate of the monetary union. For example, if the monetaryunion is the European Union (having the Euro as the currency), then anexchange rate may be calculated from the exchange rate of EURO/USD. Forexample, information obtained at block 402 may be utilized in thecalculation or reception of the price of the breakout currency. Forexample, the implementation of block 402 may provide an indication that1.3000 EUR=1 USD, therefore, the price of GRD may be established as theratio of GRD/USD. For example, because BV₇=2.5000 indicates 2.5000 GRD=1EUR, and 1.3000 EUR=1 USD, then there are 0.5200 USD/1 GRD. Therefore,the price calculated (or received) at block 416 or other methods toobtain the price of the breakout currency may be represented by P_(i)(see, e.g., entry 528 of column 530 showing P₇=0.5200).

Certain embodiments may utilize a processor, such as processor 101 shownin FIG. 1, to execute computer-executable instructions on acomputer-readable medium, that when execute perform a method ofcombining the price (e.g., P_(i)), contingency weighting (e.g., W_(i)),and the breakout value (e.g., BV_(i)), to calculate a product for eachentity (see, e.g., block 418). In one embodiment, the product may bedetermined by multiplying the price, contingency weighting and breakoutvalue for the breakout currency. For example, the computer-executableinstructions may perform a method that executes Equation #3, which isprovided below.Product_(i) =P _(i) *W _(i) *BV _(i)  Equation #3

For example, looking again to row 522 of table 520 of FIG. 5, using thevalues of obtained for Greece and applying equation #3, the product forGreece's breakout currency would be: Product₇=P₇*W₇*BV₇, therefore:Product₇=0.5200*3.2%*2.5000=0.0419

Entry 529 of FIG. 5B, therefore may indicate that Product₇=0.0419.Looking to table 520, Greece is the only entity in the illustratedembodiment that issued a breakout currency. However, those skilled inthe art will appreciate that additional entities may issue breakoutcurrencies; therefore, products may be calculated for additionalbreakout entities.

Further embodiments are directed towards calculating the product of themonetary union from which the entity or entities are breaking away from(see, e.g., block 420). In one embodiment, the product for the monetaryunion may be calculated using equation #3: Product₀=P₀*W₀*BV₀. In thisregard, the contingency weighting (W₀) of the monetary union may bedetermined according to the methods described above in relating to block412. For example, the contingency value (W₀) may be calculated, at leastin part, by determining the proportion or attribution of the monetaryunion's economic indicator value to an aggregated economic value (suchas the aggregated value of block 406). Similarly, the contingency weightof the monetary union may also be determined by taking 100% of theaggregated value of block 406 and subtracting the sum of the contingencyweights of the breakout entities. Applying such methods to theillustrated example of table 500 of FIG. 5A, would be$10,584.611−$341.000/10,584.611=96.78% (see also, entry 532 of FIG. 5showing W₀=96.8%). The breakout value of the monetary value (BV₀) may befixed at 1.0 as its currency (the Euro) is the currency of the monetaryunion (see block 414). Simply put, the exchange rate of EUR/EUR=1.0.Therefore, entry 534 of FIG. 5B may be populated to indicate BV₀=1.0. Inthis regard, a breakout value may not be calculated in certainembodiments. The price of the monetary union may be received from block402. For example, as discussed above, information received at block 402may be implemented to receive an exchange rate between a currency of themonetary union and a second currency. For example, in one embodiment, ifthe monetary union is the European Union, then the exchange rate may bethe rate of USD to the Euro. Using the above example in which 1.3000EUR=1 USD, the price of the currency of the monetary union may beestablished as 1.3 (see, e.g., entry 536 showing P₀=1.3000).

Further embodiments may receive or calculate a value from all of theproducts for a plurality of breakout currencies. In one embodiment,block 422 may be implemented to sum the products (e.g., all of theproducts from each breakout entity and the product from the monetaryunion) to create an initial value representing a prospective currencyunit of the monetary union. Certain embodiments may utilize a processor,such as processor 101 shown in FIG. 1, to execute computer-executableinstructions on a computer-readable medium, that when execute perform amethod of create an initial value of the prospective currency unit. Forexample, the computer-executable instructions may perform a method thatexecutes Equation #4, which is provided below, shows an exemplaryequation for calculating a prospective currency unity that may bereferenced throughout this disclosure as the New European Currency Unit(“NECU”), as it applies to a prospective currency based upon theEuropean Union, however, the name is merely for illustrative purposes.

$\begin{matrix}{\mspace{79mu}{{N\; E\; C\; U} = {\sum\limits_{i = 0}^{16}\;\left( {P_{i}W_{i}{BV}_{i}} \right)}}} & {{Equation}\mspace{14mu}{\# 4}}\end{matrix}$

Therefore, applying Equation #4 to the illustrative embodiment shown inFIG. 5B, applying equation #3 would be essentially be:NECU=Product₀+Product₇ because the remaining products are zero (“0”).Therefore, on the initial breakout date, NECU=1.3 USD. Therefore, on thebreakout date of the illustrative embodiment, the prospective currency(“NECU”) equals the monetary union currency (the Euro) before thebreakout currency issued.

Further aspects are directed towards creating a second value of theprospective currency unit (see, e.g., block 424 of FIG. 4). Thecalculation of a second value at a second time frame may be advantageousfor several reasons. As one example, those skilled in the art with thebenefit of this disclosure will appreciate that other entities (orportions thereof) may issue breakout currencies and/or exchange rates ofone or more currency will fluctuate. The calculation of the second value(and/or any number of reiterations) may be performed on a routine basis.Yet in other embodiments, occurrence of one or more events may trigger acalculation of a value relating to the prospective currency unit.

In one embodiment, calculating a second value of the prospectivecurrency unit may substantially incorporate and/or mimic methodsutilized in the calculation of the initial value of the prospectivecurrency unit. For example, FIG. 5C shows an updated table 522 at asecond time period. One or more exchange rates may have fluctuated fromthe first time period, such as the breakout date of Greece representedby FIG. 5B. For example, FIG. 5C shows a time period after the breakoutdate in which the exchange rate for the Euro is 1.3500 EUR/1 USD (seeentry 536 of FIG. 5C). Further, as seen by entry 528 of FIG. 5C, theexchange rate for the breakout currency of Greece (GRD) may havedeclined to 0.4400/1 USD. Therefore, an updated product may becalculated. In one embodiment, block 420 may be implemented to calculatethe updated products, such as for example, utilizing a processor toexecute computer-executable instructions on a tangible computer-readablemedium that when executed, may perform a method that executes Equation#3. Therefore, the updated P, values (shown at entries 528 and 536 ofFIG. 5C, respectively) may be multiplied with the updated W_(i) values(shown at entries 524 and 532 of FIG. 5C, respectively) and the BV_(i)previously obtained (shown at entries 526 and 534 of FIG. 5C,respectively). Further, the products may be summed together, forexample, as described above in relation to block 522 to obtain thesecond value of the exemplary prospective currency unit. Therefore, asshown in FIG. 5C, the second value of the illustrated NECU currency unitmay be calculated as 1.34195.

The methods shown in FIG. 4 and derivatives thereof may further be usedto determine the value of financial instruments in the form of futuresand/or options on futures contracts. In one embodiment, the calculationof the value of the futures and/or options on futures contracts may beperformed by an exchange, such as the Chicago Mercantile Exchange, Inc.The exchange may also perform other functions such as listing thefinancial instruments for trading, receiving bids and offers for thefinancial instruments and matching bids and offers for the financialinstruments, for example using one or more components of exchangecomputer system 100, shown in FIG. 1. Conventional settlement servicesfor executed trades of the financial instrument may also be performed bythe exchange. The exchange may also provide notice of matched trades totraders associated with matched bids and offers.

Further aspects of this disclosure are directed towards derivativescontracts including futures and over-the-counter (OTC) or interbankcontracts which may be constructed based on a calculated value of aprospective currency, such as the NECU. These contracts may befinancially or cash settled by reference to the value of the index on aspecific date. Alternatively, they may call for the actual delivery ofthe NECU basket including the Euro and any breakout currencies. Incertain implementations, one or more derivative contracts may be usefulfor managing the possible risks and consequences of a possiblesplintering of a monetary union, such as the European Union.

For purposes of illustration, a possible futures contract design isshown below as Table 2. As seen in Table 2, the Indexes are basedpossible breakout currencies from Portugal, Ireland, Greece and Spainand utilize a Base Value of 1,000.00. The futures contracts are cashsettled to a value of $50× Breakout Index.

TABLE 1 NECU Futures Specifications Contract 125,000 × Value of NewEuropean Currency Size Unit (NECU) as calculated by CME Group Tick 0.01index points ($12.50) Size Trade 9:16 am (CT) on 2^(nd) business dayimmediately Ends @ preceding 3^(rd) Wednesday of contract month Cash Allopen positions on termination of trading are Settlement cash settledbased upon special quotation of NECU. This special quotation is based onexchange rate as established by survey conducted of interbank FX dealersby Exchange staff. Surveyed exchange rates are entered into formula forcalculation of the NECU Trading Sundays through Fridays: 5:00 pm-4:00 pmHours Central time (CT) the next day. On Friday CME Globex ® platformcloses at 4:00 pm and reopens Sunday at 5:00 pm CT. Months List three(3) years out in the months of June and December Position Positions ofmore than 6,000 contracts net long or short, Accountability in allcontract months combined must provide, in a timely fashion upon requestby CME, information regarding the position

Orders regarding instruments of a prospective currency unit (or an indexbased upon a prospective currency unit) may include a trader's name,trading firm name, account number, contract, price and quantity.Additional order information may include identifying information thatuniquely identifies the order, such as a serial number, contract priceand quantity. The use of order information allows for the transmissionof critical information between match engines while minimizing theconsumption of bandwidth.

Aspects of the present invention have been described herein withreference to specific exemplary embodiments thereof. It will be apparentto those skilled in the art that a person understanding this inventionmay conceive of changes or other embodiments or variations, whichutilize the principles of this invention without departing from thebroader spirit and scope of the invention as set forth in the appendedexemplary aspects of the invention. All are considered within thesphere, spirit, and scope of the invention.

We claim:
 1. A computer-implemented method of calculating a value representing a prospective currency unit of a monetary union, the calculating comprising: receiving an aggregated economic indicator value representing an economic indicator for a monetary union at a first time frame while a breakout entity is still a member of a monetary union; based on, at least in part, a proportion of the aggregated economic indicator value attributable to an economic indicator value of the breakout entity, calculating with at least one processor of an exchange computer system, an initial value representing an exchange rate of the prospective currency unit of the monetary union against a second currency of a country that is not part of the monetary union, the calculation comprising: weighting an exchange rate of the breakout entity against the second currency according to its proportion of the economic indicator value for the first time frame; weighting an exchange rate of a currency of the monetary union against the second currency according to the proportion of the economic indicator value that is not attributable to the at least one breakout entity for the first time frame; and utilizing the weighted exchange rates to obtain the initial value of the prospective currency unit.
 2. The computer-implemented method of claim 1, further comprising: aggregating a plurality of economic indicator values representing a plurality of entities within the monetary union with a processor to create the aggregated economic indicator value.
 3. The computer-implemented method of claim 1, further comprising: determining the proportion of the aggregated economic indicator value attributable to the economic indicator value of the breakout entity, wherein the determination performed on a breakout date of the breakout entity.
 4. The computer-implemented method of claim 1, wherein the calculation of the initial value representing the prospective currency unity of the monetary union is conducted on a breakout date of at least one breakout entity.
 5. The computer-implemented method of claim 1, wherein the initial value of the prospective currency unit is equal to the exchange rate of the currency of the monetary union before the issuance of the breakout currency by the breakout entity.
 6. The computer-implemented method of claim 1, further comprising: determining a second value of the prospective currency unit at a second time frame that is after obtaining the initial value of the prospective currency unit.
 7. The computer-implemented method of claim 6, further comprising: receiving bids and offers for a breakout financial instrument based upon the prospective currency unit; and matching bids and offers for the breakout financial instrument.
 8. The computer-implemented method of claim 7, wherein the bids and offers are received at an order book module of an exchange computer system and are matched at a match engine of the exchange computer system.
 9. The computer-implemented method of claim 7, wherein the currency of the monetary union is the Euro.
 10. The computer-implemented method of claim 7, wherein the currency of the monetary union comprises the Euro or a derivative thereof.
 11. A computer-implemented method of calculating a value representing a prospective currency unit of a monetary union, the calculating comprising: receiving an exchange rate between a currency of the monetary union comprising a plurality of entities and a second currency of a country that is not part of the monetary union to obtain a price of the currency of the monetary union; receiving an aggregated economic indicator value of the monetary union; for each entity, receiving an indication at an exchange computer system whether the entity issued a breakout currency that is different than the currency of the monetary union; wherein for each entity that did not issue a breakout currency, assigning a null contingency weighting; wherein for each entity that issued a breakout currency, assigning with at least one processor a breakout value that is a reciprocal of an initial exchange rate between the breakout currency and a currency of the monetary union and assigning a contingency weighting representative of a proportion of the entity's economic indicator value against the aggregated economic indicator; receiving an exchange rate between a currency of an entity that issued a breakout currency and the second currency to obtain an initial price of the currency of the entity that issued a breakout currency; and calculating a product for the entity that issued the breakout currency with a processor using the initial price, the contingency weighting assigned to the entity, and the breakout value of the respective breakout currency; calculating a product for the monetary union with a processor using the price of the currency of the monetary union and a monetary union contingency weighting; and summing the products with a processor at the exchange computer system to create an initial value representing a prospective currency unit of the monetary union.
 12. The computer-implemented method of claim 11, wherein the economic indicator value comprises an estimate of the gross domestic product of the entity.
 13. The computer-implemented method of claim 11, wherein the currency of the monetary union is the Euro and a second currency is the United States Dollar.
 14. The computer-implemented method of claim 11, the method further comprising: receiving a monetary union breakout value; and utilizing the monetary union breakout value with the price of the currency of the monetary union and a monetary union contingency weighting to calculate the product for the monetary union.
 15. The computer-implemented method of claim 11, wherein the currency of the monetary union is the Euro or a derivative thereof and a second currency is the United States Dollar.
 16. The computer-implemented method of claim 11, wherein a government entity issues a first breakout currency that is a previously existing currency.
 17. The computer-implemented method of claim 11, wherein the breakout currency is a previously existing currency.
 18. The computer-implemented method of claim 11, further comprising: receiving bids and offers for a breakout financial instrument based upon the breakout index; and matching bids and offers for the breakout financial instrument.
 19. The computer-implemented method of claim 11, further comprising: calculating with a processor a second value representing a prospective currency unit of the a monetary union, wherein the calculation of the second value is after the creation of the first value.
 20. A computer-implemented method of calculating a value representing a prospective currency unit of a monetary union, the calculating comprising: receiving an exchange rate between a currency of the monetary union comprising a plurality of entities and a second currency of an entity that is not part of the monetary union to obtain a price of the currency of the monetary union; receiving a gross domestic product value for each of the entities within the monetary union; receiving an aggregated gross domestic product value for the monetary union; receiving at an exchange computer system an indication that a first entity of the monetary union issued a breakout currency that is different than the currency of the monetary union and in response assigning to the first entity with at least one processor of the exchange computer system, a breakout value that is a reciprocal of an initial exchange rate between the breakout currency and a currency of the monetary union and assigning a contingency weighting representative of a proportion of the first entity's gross domestic product value against the aggregated gross domestic product value; receiving an exchange rate between the breakout currency of the first entity and the second currency to obtain an initial price of the breakout currency; calculating a product for the breakout entity with a processor by utilizing the initial price, the contingency weighting assigned to the entity, and the breakout value of the respective breakout currency; calculating a product for the monetary union utilizing the price of the currency of the monetary union and a monetary union contingency weighting; and utilizing the products at a processor to create an initial value representing a prospective currency unit of the monetary union. 